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My first T3, I need understand the number

  • Last Updated:
  • Apr 2nd, 2020 9:57 pm
[OP]
Member
Mar 7, 2008
326 posts
60 upvotes

My first T3, I need understand the number

The T3 is from XGRO.
I start to bought July, 2019. So I totally got 2 DIV
REC 09/25/19 PAY 09/30/19: 88.00
REC 12/31/19 PAY 01/06/20: 373.90
So total is: $461.90

I attached my T3. there are so many boxes. How can I know these number is correct? Is that possible to do the calculation basing on these numbers to get $461.90
T5 is always very easy to verify if the number is correct or not.

Thanks.
Images
  • T3.jpg
12 replies
Sr. Member
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Feb 5, 2017
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I dont bother recalculating the values in my T3s... last year, I had at least 2 dozens of them
however, be sure to insert every value in your tax software.
also value in case 42 will change your ACB so you need to adjust your ACB because of that
finally, for every fund I own in my unreg account, I will check every year if there was any reinvested cap gain distribution emitted (does change your ACB but does not appear on any slip).
[OP]
Member
Mar 7, 2008
326 posts
60 upvotes
alexcalvado wrote: I dont bother recalculating the values in my T3s... last year, I had at least 2 dozens of them
however, be sure to insert every value in your tax software.
also value in case 42 will change your ACB so you need to adjust your ACB because of that
finally, for every fund I own in my unreg account, I will check every year if there was any reinvested cap gain distribution emitted (does change your ACB but does not appear on any slip).
Does broker (questrade) report ACB to CRA or not?
Member
May 2, 2019
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Vancouver
mouseswimming wrote: Is that possible to do the calculation basing on these numbers to get $461.90
No, but you can get 461.89 :)

Each distribution from an ETF can consist of multiple components, and XGRO seems to have them all.

Capital gains (box 21) + actual non-eligible dividends (box 23) + foreign income (box 25) + other income (box26) - foreign tax paid (box 34) + RoC (box 42) + actual eligible dividend (box 50) = total distribution.

Other boxes are derived.

And yes, as @alexcalvado said - you can just feed the numbers into software, but for box 42 you'll need to subtract it from your ACB which will affect your capital gain/loss when you sell some XGRO. ACB is your responsibility to track (brokers may not know, e.g. if you also hold same stock at a different broker). Brokers supply T5008 which may help but not obligated to represent the true ACB.

Edit: as commented below, "box 50" is incorrect - it's box 49 for actual eligible dividend.
Last edited by yvrbanker on Apr 2nd, 2020 12:31 am, edited 2 times in total.
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Feb 5, 2017
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mouseswimming wrote: Does broker (questrade) report ACB to CRA or not?
nope, its your duty to calculate and report your ACB
[OP]
Member
Mar 7, 2008
326 posts
60 upvotes
yvrbanker wrote: No, but you can get 461.89 :)

Each distribution from an ETF can consist of multiple components, and XGRO seems to have them all.

Capital gains (box 21) + actual non-eligible dividends (box 23) + foreign income (box 25) + other income (box26) - foreign tax paid (box 34) + RoC (box 42) + actual eligible dividend (box 50) = total distribution.

Other boxes are derived.

And yes, as @alexcalvado said - you can just feed the numbers into software, but for box 42 you'll need to subtract it from your ACB which will affect your capital gain/loss when you sell some XGRO. ACB is your responsibility to track (brokers may not know, e.g. if you also hold same stock at a different broker). Brokers supply T5008 which may help but not obligated to represent the true ACB.

@yvrbanker
Thanks you for giving me the formula.
7.14 + 0.27 + 310.40 + 66.35 - 38.84 +15.74 + 139.15 = 500.21

Did I do something wrong?
[OP]
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Mar 7, 2008
326 posts
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alexcalvado wrote: nope, its your duty to calculate and report your ACB
I just did some research.
So the number in box 42 is 15.74 (positive). This will decrease my ACB right? It means when I sell XGRO, I have more capital gains (pay more tax)?
Also, I only need do ACB for my regular account. Both RSP and TFSA do NOT need calculate ACB right?
Last edited by mouseswimming on Apr 1st, 2020 9:40 pm, edited 1 time in total.
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Feb 1, 2012
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Thunder Bay, ON
mouseswimming wrote: @yvrbanker
Thanks you for giving me the formula.
7.14 + 0.27 + 310.40 + 66.35 - 38.84 +15.74 + 139.15 = 500.21

Did I do something wrong?
Last nmbr you added should be 100.83, not 139.15 (box 49, not box 50)
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
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Feb 1, 2012
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mouseswimming wrote: I just did some research.
So the number in box 42 is 15.74 (positive). This will decrease my ACB right? It means when I sell XGRO, I have more capital gains (pay more tax)?
Also, I only need do ACB for my regular account. Both RSP and TFSA do NOT need calculate ACB right?
Yes, you need to subtract Return of Capital (T3 Box 42) from your ACB. This will increase the capital gain (or decrease capital loss) when you sell, which may increase your taxes (and I only said "may" because some taxpayers income is low enough that they don't pay taxes).

You only need to track ACB in non-registered accounts. Registered accounts like TFSA, RRSP, RRIF etc. are not subject to capital gains tax so it is not necessary to keep track of ACB.

Here are some links that describe tax treatment and how to track ACB:

CRA: Tax Treatment of Mutual Funds for Individuals

PWL Capital: As Easy as ACB – Understanding and tracking your adjusted cost base with ETFs

Adjusted Cost Base.ca The Free and Easy Way to Calculate ACB and Track Capital Gains
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
[OP]
Member
Mar 7, 2008
326 posts
60 upvotes
Deepwater wrote: Yes, you need to subtract Return of Capital (T3 Box 42) from your ACB. This will increase the capital gain (or decrease capital loss) when you sell, which may increase your taxes (and I only said "may" because some taxpayers income is low enough that they don't pay taxes).

You only need to track ACB in non-registered accounts. Registered accounts like TFSA, RRSP, RRIF etc. are not subject to capital gains tax so it is not necessary to keep track of ACB.

Here are some links that describe tax treatment and how to track ACB:

CRA: Tax Treatment of Mutual Funds for Individuals

PWL Capital: As Easy as ACB – Understanding and tracking your adjusted cost base with ETFs

Adjusted Cost Base.ca The Free and Easy Way to Calculate ACB and Track Capital Gains
Thank you very much!
Deal Fanatic
Feb 4, 2015
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Canada, Eh!!
mouseswimming wrote: I also buy mutual fund in my RESP account. Should I keep track of ACB? I never receipt tax slip from TD related to my RESP account.
No, unless you file US tax returns.

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